Is my father-in-law responsible for his mentally ill wife's debts?

pkg57 · 21 October 2014 at 10:06PM

My mother-in-law has suffered with mental health problems for many years. She goes up and down, sometimes having spells where she goes AWOL and spends vast amounts of money. My father-in-law has his own bank account which she can't access, but my husband and I worry that when she gets through all her own money she will come on him for his, and perhaps he'll be forced to sell their house to give her her half. Does anyone know what the legal position is with this? She won't agree to him or my husband having power of attorney.

bargainbetty · 22 October 2014 at 11:13AM

If they have joint ownership of the house then it is a shared asset and a charge could be levied against her share of it. She can't force him to sell, but a creditor could lay claim to her share of it.

As long as they have no joint accounts, then he is not liable for the money she owes on any unsecured debts, and I hope for his sake he keeps it that way.

spicefox · 25 October 2014 at 7:57PM

bargainbetty wrote: »

If they have joint ownership of the house then it is a shared asset and a charge could be levied against her share of it. She can't force him to sell, but a creditor could lay claim to her share of it.

As long as they have no joint accounts, then he is not liable for the money she owes on any unsecured debts, and I hope for his sake he keeps it that way.

This.

Worst comes to worst there will be a charging order and when the property is sold her half will go to her debts.

As long as everything is separate in names he is not liable at all. I would really urge that you try and get someone to manage her finances, even if in token payment plans.

Also - if the house is in his name, no charging orders can be levied against the property. Historical land reg's can be performed if he was to change it to his name. If she's not agreeing to POA, its doubtful she would sign over her half if the property is in their name, anyhow.

Is my father-in-law responsible for his mentally ill wife's debts?

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